Even though it's hard to imagine Apple making a car, there is an awful lot of smoke around this. There has to be a fire somewhere. Lots of people are wondering how Apple can differentiate in the car market - I think (surprisingly) it comes down to price. Few people may remember this, but when Apple announced the iPad, people were shocked at how cheap it was. People knew the iPad was coming and were predicting it would start at $1000, easily. It cost $500.
Leaving out driverless car tech, which I'm not sure whether Apple will have ready for launch, I think the Apple Car will look and function like a $100,000 car - but will cost significantly less. Say, half the price. Ive, in a recent interview, spoke about how he hated so many cars on the road. Not because they were cheap, but because they were poorly designed and put together with such little care. I think, unless he's gone off the deep end into the luxury market (which he very well may have!) he would want to produce a car that is really great - but still affordable enough that lots of people will be able to afford it[1].
All of that being said, and no matter how much Apple cares about the mass market, Apple will want to keep their high margins. They'll need to bring down manufacturing costs considerably. However, if anyone can do it, it's Tim Cook. He's well known for being a wizard at managing supply chains. Perhaps it'll be their first product assembled entirely by robots, who knows.
We'll see what happens but if Apple are able to produce a very high quality car at a reasonable price, I suspect that it will be extremely disruptive. In the UK at least, pretty much every car under £30,000 is utter garbage. I'd love it if Apple could change that.
[1] I suspect, as with Apple Watch, there will also be a high-end version of an Apple Car. It will probably have the same functionality (i.e. it won't just be a super-car) but will have extras, like a Hermès leather interior. I, for one, look forward to customising a car like a new Macbook - current car customisation screens are a pain (besides Tesla, actually, theirs isn't too bad).
> In the UK at least, pretty much every car under £30,000 is utter garbage.
What?
Modern cars are of incredibly high-quality, even at the lower end of the market.
Take a look at what taxi drivers in the UK use. Today, the taxi fleets are dominated by Skoda[0], Kia and ( in London ) Toyota. Those all cost under £30,000. Well under. Yet they hold up well in the daily urban taxi grind.
Mercedes, BMW and other 'premium' brands are notable by their absence from such fleets. That's because they don't offer any quality differential correlating to their price. They mainly occur in the higher-tier occasional-hire market, aimed at people who want image.
[0] That fact that Skoda is preferred over the same parts wrapped in an Audi or VW body is interesting.
Sorry, perhaps I should have been more clear - I'm not saying these cars are unreliable or will fall apart, I'm saying they're ugly and made of horrible materials. Unpleasant fabric, plastic that is textured to "look" like leather, fake leather and just awful, awful designs (e.g. The Toyota Yaris or the Nissan Juke - just dreadful). I'm sure these cars are very reliable, but from a design perspective they're ghastly.
Leaving out driverless car tech, which I'm not sure whether Apple will have ready for launch, I think the Apple Car will look and function like a $100,000 car - but will cost significantly less. Say, half the price. Ive, in a recent interview, spoke about how he hated so many cars on the road. Not because they were cheap, but because they were poorly designed and put together with such little care. I think, unless he's gone off the deep end into the luxury market (which he very well may have!) he would want to produce a car that is really great - but still affordable enough that lots of people will be able to afford it[1].
All of that being said, and no matter how much Apple cares about the mass market, Apple will want to keep their high margins. They'll need to bring down manufacturing costs considerably. However, if anyone can do it, it's Tim Cook. He's well known for being a wizard at managing supply chains. Perhaps it'll be their first product assembled entirely by robots, who knows.
We'll see what happens but if Apple are able to produce a very high quality car at a reasonable price, I suspect that it will be extremely disruptive. In the UK at least, pretty much every car under £30,000 is utter garbage. I'd love it if Apple could change that.
[1] I suspect, as with Apple Watch, there will also be a high-end version of an Apple Car. It will probably have the same functionality (i.e. it won't just be a super-car) but will have extras, like a Hermès leather interior. I, for one, look forward to customising a car like a new Macbook - current car customisation screens are a pain (besides Tesla, actually, theirs isn't too bad).